Tag: information Page 3 of 5

Money represents human productivity, but the interest on money represents risk. This means that the lender collects interest because that represents the risk that they assume in departing from their money. Meanwhile productivity fluctuates naturally and can be affected by a many external forces.

The problem is that risk can never be negative, therefore interest rates can never be negative – that is called “breaking he buck”. Risk is a measure of volatility, or, “deviations from what is considered normal”. While there is certainly good deviations and bad deviations, there can never be a “negative” deviation from normal – it is a mathematical impossibility, a glitch.

The result is that productivity must always be driven up and up and up – sometimes in unnatural ways, such as forcing consumption. Constant production is unacceptable – it must always increase. Vacations, free time, family time, and leisure are not acceptable. What if we had a currency that could accommodate a negative interest rate?

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Social Currency And The Innovation Bank

By Admin

On February 13, 2010

In General Information

The real estate market is trashed, money markets are unstable, commodities are in the tank, the banking system is corrupted to the core, inflation is looming around every corner, and the politicians are engorging themselves in a game of Cerebral Gridlock.

Literally, there is no safe place to put your money. Instead, people are investing their productivity in social media – social media is simply a storage device for knowledge assets. Soon it will become a stock exchange for knowledge assets. Investors should not take this lightly – the best place to store your money is in the real productivity of real people.

People are trading knowledge assets in social media. This exchange is denominated by a conversational currency. If we consider the structure of conversations and compare that to both the structure of social networks AND the structure of our financial system, we see a huge opportunity to develop an alternate financial system that can capitalize and securitize knowledge assets in social media.

Ingenesist.com

Music by Phil Felicia

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Breaking The Monopoly on Money

By Admin

On February 10, 2010

In General Information

Hundreds of community currencies are forming across the globe. Gaming currencies are jumping back into reality. Europeans communities are calling for the authority to print their own money arguing that the fractional reserve system is like trying to recover from a war by waging more war (a novel thought).

Many people doubt that the dollar has more than a decade or so of steam left as the interest on debts mythically exceeds the total amount of money on Earth (at least in my world). Yet banks march on, heading straight for the cliff.

Governments are polarized against themselves (and in cooperation with other governments) to solve the problem – except by reducing services to the people. But isn’t this why Governments exists in the first place? Are they suggesting their own elimination? Of course not, so they issue press releases worth about as much as the photons they are printed with.

Meanwhile, corporate media is trying to dominate (and subdue) social media….ultimately, the end game will be the other way around. This short video invites the status quo to look at what people are “doing and saying with their productivity”

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Social Media as a Vetting Mechanism

By Admin

On February 9, 2010

In General Information

Where the vetting mechanism fails, the system fails. This has happened in countless instances from the current financial crisis to nearly every product, market, environmental calamity, or political failure in recorded history – the referees who were supposed to keep their eye on the ball, did not. Likewise, where a vetting mechanism is effective, the system is efficient.

EBay does little more than defend the vetting mechanism (feedback system) and entrepreneurs do the rest. The credit score allows companies and people to capitalize and securitize assets. The US legal system keeps the game of commerce as fair as practical. Police officers and school boards keep our society safe and smart. We often overlook the importance of vetting in our communities.

Today, we find severe problems in finance and government and people are investing their knowledge assets in social media as the place to “store and exchange” their present and future productivity – instead of debt. As such, social vetting is taking many different forms to validate, qualify, and quantify those assets.

While the progression may not be noticeable, there will be a tipping point where the medium has built enough trust that it can support a currency. This new currency needs to be only a little bit more “trustworthy” than the currency it will replace. This is the point where knowledge becomes tangible.

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Video: The Calculus of Global Outsourcing

By Admin

On February 8, 2010

In General Information

Picture credit

The knowledge economy is a completely different asset than the industrial revolution’s Land, labor, Capital economy. Yet, our modern accounting systems and even our definitions of terms such as innovation, work, employment, education, are built from industrial era or military logistic roots.

Modern Globalization is a system – it must be analyzed like a system. Data, Information, knowledge, and Innovation are profoundly related in a system. If you take away one of the components, the others become worthless.

When we outsource our knowledge economy, the innovation economy is exterminated. The Ingenesist project specifies an Innovation Economy built on social media which will capture the knowledge inventory of communities – let’s hope that we have not forgotten how to build an ….

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Video: America; A Next Developed Country

By Admin

On February 5, 2010

In General Information

America is stuck in the Industrial Revolution. A loose paraphrase from Seth Godin points out “our entire education system is designed to prepare people to work in factories, consume stuff, and believe this makes us happy”

Now that the factories are gone and the rest of the World has copied all of our tricks (while not copying our mistakes) it is time to move on. What is that next watershed economic paradigm? Who is going to figure this one out? The one who does will define the new meaning of “A Most Developed Country”

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Dollar vs Rallod-A Mirror Image Economy

By Admin

On February 4, 2010

In General Information

The problem with the American Dollar is that it is backed by future productivity in the form of debt – that is, our “promise” to pay off the debt. We know this because if America signaled that it was not willing or able to pay it’s debt, the dollar would cease to be used as a trading mechanism.

Innovation is also a promise backed by future productivity. By innovating in a new processes, method, system, or product today you are making a promise to increase productivity tomorrow.

Therefore, debt and innovation are blood brothers or mirror images of the other – they are both “currencies” (means of storing value) backed by future productivity. We can build a new economy around this concept which effectively weeds out the bad parts and keeps the good parts of the institutions and infrastructure that are already in place. After all, two currencies backed by the same underlying asset would be fully convertable

After all, the definition of a crook is someone who steals someone else’s productivity. May the best currency win.

Dollar vs Rallod-A Mirror Image Economy

Update: 03/2015 I recently stumbled upon this definition in a Gamification Wiki concerning the Rallod. Thanks for the shout out!!

Rallod (Dollar spelt backwards) is concept developed by Dan Robles as a social capital currency which is based on the future productivity of innovation. He uses the Bizarro world featured in DC superman comics to provide an explanation of how his concept works. He distinguishes between normal economics revolving around Land, Labour and Capital and social capital which revolves around intellectual, social and creative capital. What is tangible in the normal world is intangible in the Bizarro world and vice versa. Robles believs the two worlds are mirror images of each other.

Visit www.badgeville.com to learn about the global gamification leader

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Video: Intellectual Property in the Social Media Cloud

By Admin

On February 3, 2010

In General Information

The Patent system is slow, static, and expensive. Sure it’s great for corporations and wealthy institutions, but what about the rest of us? How do we get paid for our intellectual property? We make rapid fire decisions every day that can make or break markets – who’s got time to patent?

Or maybe the last thing that Wall Street wants is for Engineers, Architects, designers, and creative people to get “royalties” on their work. That is What Wall Street does, they collect the royalties of the creative people in America….until now. Social media is a social contract, IP is our currency.

Image credit

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Video; You Can’t Make a Bet Without Odds

By Admin

On February 2, 2010

In General Information

Entrepreneurs won’t make a bet without odds. So when it comes down to assembling knowledge assets into an innovation enterprise, how can entrepreneurs predict the likelihood that they will be successful? The short answer is that they cannot.

The simple truth is that humans have not evolved to the point where they will organize themselves as knowledge assets in a financial system – they still need to use a proxy for their productivity controlled by a master, a corporation, an idealism. It’s called money, politics, and fear.

This is the greatest constraint on economic growth that America faces, not inflation, debt, taxes, or regulation….entrepreneurs have simply run out of info juice. This is the greatest challenge of our times. What are the odds that we’ll figure it out?

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Video: Taxonomy for Community Knowledge Inventory

By Admin

On February 1, 2010

In General Information

Any taxonomy that is used to classify information is a candidate for the classification of knowledge. This is because knowledge is related to information in a differential equation that also includes data and innovation (another blog post).

The trick is that everyone needs to be using the same taxonomy so that we can all access knowledge inventories of the people around us as easily as it is to access books on Amazon.com. This will lead to a trade in knowledge assets formally the sole domain of corporations through the process of industrialization (yet another blog post) .

Please enjoy these videos, use them as you wish and let us know what you think.

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The Old Economic Paradigm Breaks Down

By Admin

On January 29, 2010

In General Information

As the economic crisis unfolds before us and a paralyzed government, we must seek to understand the forces still acting upon all of us. When cause and effect have become a “complete mystery” to our most prominent thinkers and leaders, they need to look at history.

Does the Merchant Class allocate land Labor and Capital to the a great extent in an Innovation economy? The accepted statistic is that 70% of a company’s value comes from human capital and the creative solutions that they produce.

Land, labor, and capital are ineffective proxies for human creativity and intellect – end of story. The road to new monetization is not paved upon on the roadmap of the industrial revolution. Something new needs to happen:

The reality is that opportunities are endless if we can simply shift away from history and build a new future; a new economic paradigm.

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Video: Tangible Knowledge; The Holy Grail of Social Media

By Admin

On January 22, 2010

In General Information

Accounting Balance sheets have tangible assets and intangible assets. Unfortunately, intangible often means invisible and those on the dark side of the moon wind up in the unemployment line.

What if knowledge assets were tangible? What if you owned your knowledge like a company owns a structure or specialized machinery? What if it could be quantified and qualified so that it resembles all other tangible assets? Easy answer…entrepreneurs will trade it, like money.

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Video: The Last Mile of Social Media

By Admin

On January 21, 2010

In General Information

Sure Bro…Facebook, Twitter, and Linkedin are great for broadcasting across the Ocean, but how good are they for meeting your neighbors? As wonderful as all this global chatter appears, nothing tangible happens until the rubber meets the road.

Don’t Worry, Be Neighborly…

The following video describes how the components of the next economic paradigm must act locally, but share globally. For anyone wondering what to do next or where the great opportunities are, think about building out the Last mile of Social Media.

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Video: Currency Must be Backed by Productivity

By Admin

On January 20, 2010

In General Information

We must all be engaged in the process of Innovation. We must all be engaged in the process of increasing each other’s productivity – in whatever form that may be, that’s the objective. Anything that wastes time needs to go away. It’s that simple.

The following video discusses what the dynamic of an innovation economy will look like. Not glass walled towers and obscure think tanks, but real productivity – yours and mine. That’s the basis of the new global currency. It’s that simple.

Share Me

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Rising Tide Floats All Boats

By Admin

On January 19, 2010

In General Information

Wow, stunning.

You know that the time is right for a disruptive technology when nobody can agree what’s floating the World Currency. Will there be deflation, Inflation, or a new currency altogether?

We believe that a new currency will emerge.

It will be called a Rallod (dollar spelled backwards), similar to a dollar, except corrected to represent real human productivity. It will be exchanged in a new social media application and supporting institutions will be crowd sourced. If you think we’re nuts, you haven’t been reading this blog long enough. If we don’t succeed, there will be someone behind us trying.

Never, ever, ever underestimate the cloud; the source of all rain upon which rising tides float all ships, yadda, yadda, etc…..

Conversational Currency

Imagine people owning their knowledge assets like real property? Imagine that people trade knowledge assets like financial instruments? Imagine if they can bundle and securitize knowledge assets like the WS glory days did with debt (debt is really just a future contract on knowledge assets)? Far off? Think again….

In the mean time; here are some interesting articles aggregated by McKinsey:

****

As the US economy emerges from the crisis, there’s little consensus on what lies ahead. Economic forecaster David Levy says chronic high unemployment will lead to, at worst, slight deflation. While former Fortune writer and financial adviser Al Ehrbar says, not so fast: with the Federal Reserve having flooded the market with dollars, massive inflation is likely.

Read Here

Plus: What Matters continues the conversation on the fate of the dollar:

GENG XIAO: Why the Chinese will not bail out the dollar by allowing the renminbi to appreciate

Read here

BENN STEIL: There are steep downsides to both a strong dollar and weak dollar policy

Read here

GERARD LYONS: Whether or not the dollar will topple isn’t in doubt, only its speed of decline is

Read Here:

MARTIN GILMAN: Now that the United States is a debtor nation, its currency can no longer dominate

Read Here:

CHARLES WYPLOSZ: The dollar is the worst international currency, except for all the others

Read Here:

TIM ADAMS: The dollar’s share may shrink, but it will continue to dominate

Read Here

MICHAEL MANDEL: Beware of a dollar crash if the United States loses its innovation edge

Read Here

JEFFREY GARTEN: The question isn’t if the dollar will be replaced–it’s when and how

Read Here

Join the conversation at WHAT MATTERS

Here

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Video: Money vs. Productivity

By Admin

On January 19, 2010

In General Information

The questions are:

1. What is money? 2. Why is it important? 3. Why is it all so confusing?

The answers are:

1. You are money. 2. You are important. 3. You’re not supposed to know this.

This video provide an easy way to find the truth among the high-fiber ambiguity that has become our political morass. Oh Yeah, they want you to be confused because they don’t want you to act any differently.

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Calculating The ROI of Social Media

By Admin

On January 18, 2010

In General Information

This video introduces a new way of looking at social media valuation. People find value in social media otherwise they would not do it. How is that value expressed as a financial instrument? If you engage your clients in the same currency that they are trading among themselves, the greater the likelihood you will realize the value of the new media phenomenon.

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What is the Quality of Conversation?

By Admin

On January 15, 2010

In General Information

As we build the Next Economic Paradigm we seek to define the quality of conversations.

The Common European Framework of Reference for Languages: Learning, Teaching, Assessment, (CEFR), is a guideline used to describe achievements of learners of foreign languages across Europe.

Here is the twist.

We propose the use of a language proficiency standard as the conversational quality standard for any subject. Why?, Because every subject has it’s own language and related subjects have related languages. Try to bridge the philosophical chasm for yourself by reading the descriptions and drawing the analogy to the subject of your expertise, lack of expertise, or your interests and intension!

As such, for conversations about any subject matter in the world, past present or future, the following also holds true for subject matter proficiency:

Basic Proficiency

A1: Can understand and use familiar everyday expressions and very basic phrases aimed at the satisfaction of needs of a concrete type. Can introduce him/herself and others and can ask and answer questions about personal details such as where he/she lives, people he/she knows and things he/she has. Can interact in a simple way provided the other person talks slowly and clearly and is prepared to help.

A2: Can understand sentences and frequently used expressions related to areas of most immediate relevance. Can communicate in simple and routine tasks requiring a simple and direct exchange of information on familiar and routine matters. Can describe in simple terms aspects of his/her background, immediate environment and matters in areas of immediate need.

Intermediate Proficiency

B1: Can understand the main points of clear standard input on familiar matters regularly encountered in work, school, leisure, etc. Can deal with most situations likely to arise whilst travelling in an area where the language is spoken. Can produce simple connected text on topics which are familiar or of personal interest. Can describe experiences and events, dreams, hopes & ambitions and briefly give reasons and explanations for opinions and plans.

B2: Can understand the main ideas of complex text on both concrete and abstract topics, including technical discussions in his/her field of specialisation. Can interact with a degree of fluency and spontaneity that makes regular interaction with native speakers quite possible without strain for either party. Can produce clear, detailed text on a wide range of subjects and explain a viewpoint on a topical issue giving the advantages and disadvantages of various options.

Advanced Proficiency

C1: Can understand a wide range of demanding, longer texts, and recognise implicit meaning. Can express him/herself fluently and spontaneously without much obvious searching for expressions. Can use language flexibly and effectively for social, academic and professional purposes. Can produce clear, well-structured, detailed text on complex subjects, showing controlled use of organisational patterns, connectors and cohesive devices.

C2: Can understand with ease virtually everything heard or read. Can summarise information from different spoken and written sources, reconstructing arguments and accounts in a coherent presentation. Can express him/herself spontaneously, very fluently and precisely, differentiating finer shades of meaning even in more complex situations.

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The Monetization Mystery

By Admin

On January 14, 2010

In General Information

OK, the social media buzz is getting a little stale folks.

Yes we know that social media is valuable.
Yes we know that lots of folks are doing it.
Yes we know that the predictive web is predicted.
Yes we all know that all this activity will mysteriously “monetize”

Show me how everyone is related and I’ll show you a new economic paradigm. Here is how they are not related:

They are not related by “earning” people’s trust today so you can shove your product down their throat tomorrow.
They are not related to collecting thumbnails.
They are not related to giving the g00gle alg00rithm an 00rgasm.
They are not related by “The 6 Steps to [Fill in The Gap]”.

The next economic paradigm is related to transformation.

People transform data into information
People transform information into knowledge
People transform knowledge into innovation
People transform innovation into data

Under a set of fundamental assumptions that:

All people are socially talented
All people are intellectually talented
All people are creatively talented
All people are good at something
Nobody is good at everything

This is how value is generated. This is where the mystery of monetization hides.

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Using Social Currency To Fight Terrorism

By Admin

On January 8, 2010

In General Information

Given the events of the last several weeks, it’s time to for the aviation industry to get serious with Social Media. This article demonstrates how an alternate currency can be used to severely reduce or eliminate terrorist risk in commercial aviation. Think I’m kidding, read on.

Obviously an airline will not let you board an airplane if you don’t have the financial currency sufficient to buy ticket. Why should an airline let you board an airplane if you do not have social currency sufficient to fulfill your social obligations while in the air?

People with extreme social currency deficiencies are routinely stripped of their rights by a jury of peers and isolated from society for a period of time (where they would not board an airplane anyway). While there are many systems in place to manage the various degrees of social currency deficiency, none appear to be able to identify a terrorist without also violating the rights of non-terrorists.

Human Writes

However, many people are willing to share information about themselves to associates with whom an economic benefit is shared or exchanged. This happens a billion times per week on Linkedin, Facebook, and Twitter – why not among fellow passengers? After all everyone is already connected by 6 degrees.

What would a terrorist’s Facebook profile say about them? Do they have a lot of referrals on linkedin? Do they post great work on Flikr? Is their community orchestra featured on My Space? Are their posts popular on twitter?

Should a social currency credit score become imperative to social transactions as the financial credit score is for financial transactions?

Banks and Insurance companies already rely on a highly invasive “Credit Score” to establish financial risk profile as a means of protecting their selves and their other clients. Why wouldn’t an airline use a social credit score to establish a social risk profile as a means of protecting their selves and the lives of their other clients?

Ruse and lose

Sure, the bad guys can adapt to social media as they have adapted to all other measures. The problem is that the greater the size and scope of their social media ruse, the more difficult it is to maintain the ruse. A threshold score could be set to nearly eliminate this possibility. Those folks can then simply opt into the full body scan.

The Paradigm Shift

As the saying goes, the attacker needs to be successful only once, while the defender needs to be successful every time. The concept of a Social media credit score flips this paradigm on it’s head. The attacker’s social credit score needs to be successful every time. The defender needs to be successful only once.

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Thank You for Flying Citizen Airlines, LLC

By Admin

On December 23, 2009

In General Information

I will be introducing a number of applications of Innovation Economics in Social Media as continue writing part 2 of my book. The objective is to identify new business opportunities by disrupting the old economic paradigm with new ways to organize people around social media. In this case, a troubled industry would team up with communities that are not their direct customers:

I live in Edmonds Washington near Paine Field – home of the sprawling Boeing manufacturing site of the 747, 777, and 787 aircraft. For years, the county executives have been trying to lure major airline service into Paine Field Airport claiming the economic benefits would far outweigh the drawbacks. Paine Field is about 1 hour north of Seattle Tacoma Airport and about 3 hours South of Vancouver, BC.

Many efforts over the years to locate another airport in this gap have hit political and environmental land mines. Paine Field expansion is no different. For years, the county, state, and FAA have been funding “improvements” that look a lot like accommodations for scheduled airline service. The county executive has been courting carriers, lobbying ‘unaffected voters’ and corralling legislators to this grand economic development cause.

The citizens of neighboring communities have not stood still. They have commissioned studies of every environment and quality of life factor from home value impact to distracted learning at the local schools. They cite urban blight, social deviance, and under development at other similar expansion projects. Political careers are made and broken over support or opposition to the airport expansion.

So far, the market has not proven large enough to support a major B737 sized scheduled service. Ironically, there have been very few studies of the impact of private aviation service expansions. Little data is discussed related to the noise foot print of small jets versus large jets. Very little data is presented to the community about distributed vs. concentrated air and car traffic flows and the upscale effects of a private aviation presence.

To the community’s advantage, small private carriers can soak up and diffuse the market that would eventually support a major carrier. These battles are raging all over the country against the political mantra of Jobs! Jobs! Jobs! Local communities are running out of money, lawyers, and stall tactics to fight them.

With the price of seat on a (full) private Jet about the same as a business class ticket on a major airline, local communities may want to go into the travel agency business. By using community media, website, a booking website, twitter alerts, and tourism agents to identify and match travelers to destinations combined with some proactive social media marketing, Citizen Airlines LLC can stave off an airport expansion by competing with it.

Meanwhile, unemployed citizens are available to manage an on-line Community Branded jet service (operated by a private carrier). Advertising and marketing can be transferred to the community in exchange for reduced rates and shared access to private aviation reports and data which would help them fight airline expansion.

This requires that the private aviation industry empower communities who are not necessarily their direct customers but are stakeholders none the less. Social Capitalism is the act of elevating oneself by elevating the entire community rather than opressing then for capitalist gains. By giving people a voice, the economy gets a bullhorn.

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Is it Social Media or Corporate Media?

By Admin

On December 22, 2009

In General Information

Visionaries Ho!

There are no shortage of intelligent and visionary social media celebrities. They write great books about markets, social media tools, strategies, and on-line reputation for the benefit of the millions of people stuck on any part of the slippery social media learning curve. They are infinitely generous with their knowledge and share it freely at countless conferences, blog posts, and syndicated articles.

There is, however, one thing that most of these Guru’s have in common – they consult to and are paid by large corporations. I could be considered part of this crowd for whatever my influence is worth. So the question about causation is due – will social media develop as a function of corporate interaction with it?

If so, then it is not social media – it is corporate media.

This is no surprise, nor should there be any apparent concern, after all, everyone has to make a living and it is better that the corporations pay people to create content that benefits me. The practice is conducted quite ethically too -most readily disclose where their financial support comes from and we all benefit from free information that helps us keep the playing field as level as it can be.

But at the end of the day, it’s all about eye-balls and bullhorns. In order to produce eyeballs and bullhorns, people must be sitting at a computer or, at least, staring at a handset. The longer you can keep people interacting with the brand instead of interacting with each other, the better off everyone is, right?

Social Media Consumer Advocate

A consumer advocate is someone who helps look after the best interest of the consumer for product safety and false advertising. Social media is pushing the envelope of the corporate interaction with consumers. “Advertising” no longer lends itself to the objective review of a billboard, commercial, or public statement. Social Media Marketing is increasingly sophisticated and manipulative. The vulnerable people; children and elders are no less vulnerable on social media, and may be more.

Social anomalies?

Some of the emerging research related to social media is surprising with increased instances of what can be considered social anomalies:

– Infantilism; adults doing childish things like playing silly games in ‘public’
– Attention deficit hyperactivity disorder; constantly checking for updates and new photos,
– Depression and loneliness; preference of social media over real live interaction
– Narcissism; The excessive love or admiration of one’s image of their self.

Is it social because it is media or is it media because it is social?

We need to ask ourselves what is the difference between computer enabled reality and computer simulated reality. If we lose “causation” the entire body of analysis can be called into the question: is social media or is it corporate media?

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Predictions for 2010 and Beyond – Nothing is Sacred

By Admin

On December 21, 2009

In General Information

It looks like everyone is buffing up their predictions for another year of astonishing growth by social media. The last several years have brought so many surprises that the next several are promising to yield a bumper crop of “I told you so” fodder from the “pithier than thou” crowd.

My prediction for 2010 is that nothing is sacred, including the onslaught 2010 predictions. Therefore, I’ll will go way out on a limb and make my 2011 predictions in 2009.

In General:

The interest coming due on our national debt will consume increasingly more of the money that institutions need to provide basic services. As these institutions weaken, they will increasingly be replaced by social media enterprise. These structurally weakened institutions will drive social media innovation more than any other factor.

Specifically:

Social vetting will catch everyone by surprise. Google buying Yelp is the game changer that will shake markets to the core. A market can only be as efficient as its vetting mechanism. To control vetting is to control a market – ask any despot. Where the vetting institutions of the old paradigm break down, they will be replaces by social media vetting. Nothing is sacred – the SEC, AMA, Federal Reserve – everything is vulnerable. Google knows this and will usher in an era of social media applications that will completely disrupt the gatekeepers.
Everyone says that social media will monetize. It will, but not like anyone expects. 2011 is the year of the Deep Web; the deep web is the vast universe of unprocessed data that exists like dark matter in the Google-verse. Social media will monetize around data because data is the only thing that corporation, governments, and other people are willing to pay for. Google created economic initiatives for legions of entrepreneurs to create information content. The new Deep Web Search engines will create economic incentives for legions of entrepreneurs to create databases.
The convergence of data will create the “new monetized innovation economy” defined by the way people interact with data. Highly localized data that will reflect the knowledge inventory of a community and will be represented by a virtual currency.
It will become increasingly apparent that many of the functions of a corporation can be duplicated outside a corporation by new vetted social media applications. Networks of people will become “corporations” and trade knowledge assets through the trade of virtual currency contracts.
Corporations will become technology centric rather than industry centric with open source architecture liberated to armies of diverse entrepreneurs. For example, breakthoughs in one industry will shoot across all industries like iphone apps – especially effective in environmental and “community organization” innovations. Nothing is sacred.

So there it is and be assured that 2012 will not disappoint even the hardiest eschatologist!

Sorry for not repeating the “real-time is king” mantra or singing the “people will finally pay for content” tune, or reciting the “every department is the marketing department” manifesto. Something much bigger is about to happen. The evolution away from the current financial system will drive social media more than any other factor.

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Is Wall Street Irrelevant to an Innovation Economy?

By Admin

On December 20, 2009

In General Information

The most difficult challenge facing the modern creative entrepreneur is the funding of innovation. Likewise, the greatest constraint on an innovation economy is the funding of innovation. Having great new ideas is the easy part; actually building something around those ideas is hard work.

As such, the funding all of that hard work is the constraint on innovation economy. Traditionally, the “corporation” served as the legal entity within which all the hard work would be contained and the accounting system through which it would be financed. But even that arrangement does not work well enough to support a new economic paradigm for an innovation economy.

Is Wall Street Irrelevant to an Innovation Economy?

Our modern and supposedly efficient financial system in fact punishes innovation. If a company announces a new multi-year allocation of a substantial amount of money toward new innovation, stock price of the company is pushed downward since the funding would apparently be taken from today’s profits. The market would prefer to take their money elsewhere until the (now unfunded) innovation is market ready.

The prospect for the individual entrepreneur is worse. The modern and supposedly efficient banking system does not acknowledge an entrepreneur’s good idea and the work that they are willing to do to reach fruition.

So if most innovation (and the hard work of developing it) is self-funded, and all innovation (and the hard work of developing it) is the basis of all wealth creation, why do we need Wall Street? Ironically, the ‘revelation’ of the next economic paradigm is that Wall Street is ‘irrelevant’.

The opportunity for the future is to develop a financial system that does accommodate the fact of innovation and the willingness of entrepreneurs to do the hard work of developing it.

If taken in aggregate – the total wealth creation of all private innovation is obviously some positive number. If better data were accumulated regarding all the private innovation that is happening, then that positive number for overall wealth creation can be predicted within a range. The better the data are, the smaller the range for this estimate of net wealth creation.

If net wealth creation can accommodate the past and predicted into the future, then a cash flow can be assigned to all private innovation. If a cash flow can be predicted, then a bond can be issued backed by this estimated cash flow. This cash flow, while not actually realized can be expressed in terms of an IOU credit. These credits can be traded like money

Now it becomes in the best interest of a market to protect, nurture, and legitimize the innovators who are willing to do the hard work to develop the next innovation industries.

Is Wall Street Irrelevant to an Innovation Economy?

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Diversity in Innovation

By Admin

On December 19, 2009

In General Information

Most literature on the subject of Innovation cites diversity as an important component of the innovation enterprise. Unfortunately diversity rides a political narrative rather than practical applications. Polarization is the death of diversity and the political narrative that plagues our country also plagues our ability to innovate.

Process Diversity

Not only does the diversity in innovation matter, the diversity of acceptable outcomes of innovation is also important. In addition, the diversity of attempts at innovation is essential, i.e., failure must be culturally acceptable. Preconception, bias, thresholds, and ideology often spell the end of a economic outcome.

Moving Against the Grain

Unfortunately, the forces acting against diversity are deeply ingrained in each of us whether we’ll admit it or not. For example, if you are in charge of producing diverse groups, processes and outcomes. How does one extract their own personal bias? How does one determine how much diversity is needed? Removing oneself produces randomness. Including oneself produces similitude. Polarization returns.

A Diverse Quagmire

Most companies innovate with existing personnel whose behavior can only be a function of their interaction with the company for their career and retirement prospects. Utilizing external sources does not eliminate this bias and may in fact magnify it.

There may be a way out of this quandary; we must open our observation to include all possible outcomes as worthwhile. Then we must distribute the results broadly. Where diverse people observe the same event, objectivity is achieved.

A striking resemblance to social media

By observing something derived from unobservable events, we can gain a great deal of information. because Social media is experiencing extraordinary growth we can say that a great amount of innovation is occurring. It is our prerogative to capture the innovation and not to expect the innovation to capture us, our government, or our corporations.

Diversity by Proxy

At the Ingenesist Project, we define innovation as outcomes proportional to the rate of change of knowledge with respect to time. As such, all we need to do is look for high rates of change of knowledge and we know that innovation is taking place. We do not know what the innovation is, where it’s directed, or what the market for the innovation may be. However, when we employ diverse observation, these answers begin to emerge.

Social media provides an interesting backdrop to the innovation process. Social Media does not care what you look like, the clothes you wear, or the church you attend. Social media hold no monopoly of opinion on diversity –

Diverse Incentives

If we take a lesson from economics, we know that people will generally act in their own perceived best interest. Then we can apply a set of incentives that modifies the best interests of the people. These incentives may be rewards, access to more incentives, or reduction of risk. Suppose that diversity were in fact a process of self selection or self removal from an objective? That is, people would have enough information regarding the potential outcomes that they could choose to interact with the process or not. In effect, innovating as an economy.

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